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5 Ways to reduce cost of car insurance renewal in 2024

5 Ways to reduce cost of car insurance renewal in 2024

Discounts and money-saving deals are always looked forward to no matter whatever you pay for. After all, these discounts and deals reduce your expenses and help in saving money which is what everyone loves.? The case of car insurance policy is no different. Car insurance policies also come with various options which help in reducing the premium payable. If you look carefully and if you are knowledgeable enough, you can opt for various ways which would reduce the premium of your car insurance plan.

A car insurance policy is mandatory in India and you have to renew the cover regularly to enjoy continued coverage. At the time of car insurance renewal, there are many ways which can help you reduce your renewal premium. Do you know about them?

Here are five of the best ways to reduce the cost of your car insurance policy in 2020 when you renew it:

  1. Look for premium discounts

Car insurance policies offer different types of premium discounts which can help you lower your premium cost. You get a discount if you are the member of a recognised automobile association, if you install safety gadgets in your car like ABS, anti-theft device, etc., if you modify the car for the use of a disabled, etc. So, when you do car insurance renewal, search for these discounts and if they are applicable, use them to reduce the premium cost.

  1. Use your policy’s no claim bonus

If, in a policy year, you do not make a claim under your car insurance plan, you get a no claim bonus. This bonus is awarded as a premium discount when the policy is renewed. Moreover, the discount increases with each subsequent claim-free year. Here is a look at the discount rates –

No claim in the first policy year 20%
No claims in two successive policy years 25%
No claims in three successive policy years 35%
No claim in four successive policy years 45%
No claim in five successful policy years 50%

When renewing, check how many claim-free years you have completed and use the above-mentioned no claim bonus discount rates to get a flat reduction on your renewal premium.

  1. Opt for voluntary deductible

Voluntary deductible is when you voluntarily undertake to pay a part of the claim yourself over and above the compulsory deductible limit. When you choose voluntary deductible, you reduce the claim burden of the insurance company and the company rewards you with a premium discount. So, opting for voluntary deductible also helps in lowering your renewal premium.

  1. Avoid small claims

Whenever you make a claim in your car insurance policy, the accumulated no claim bonus becomes nil. In the next year, when you renew the plan the no claim bonus discount will not be available and you would not be able to reduce the premium. Moreover, the no claim bonus rate would again start from 20% even though the accumulated bonus before the claim was higher. Due to this, it is always advised that you should avoid making a small claim in the policy. If the claim is of a smaller amount, pay for the expenses yourself so that you can save the discount.

  1. Compare and buy

When renewing your car insurance policy, it is not necessary to stick to the same insurance company. You can switch to another policy if you find a better deal. So, when renewals are due, compare the available policies to find a plan which has a lower rate of premium without compromising on the coverage benefits.

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While car insurance is mandatory, you can definitely lower the premium outgoes if you choose any one or more of the above-mentioned ways. Why pay a higher premium when there are ways to save?

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